A report showed that activity in China’s services sector dropped to a 17-month low in December, weighing on global equities.

U.S. stocks closed lower Wednesday as falling oil prices, worries about slowing growth and North Korea’s claim to have completed its fourth successful nuclear test weighed on global markets.

Shares extended their decline after the release of minutes from the December Federal Reserve meeting, which showed some policy makers had reservations about raising interest rates.

The Dow Jones Industrial Average
DJIA, -0.97%
finished down 252.15 points, or 1.3%, at 16,906.51 — its first close below 17,000 since October. The S&P 500 index
US:ESH6
slid 26.45 points, or 1.3%, to 1,990.26, its first close below 2,000 since mid-October. All of the S&P 500’s 10 sectors finished in negative territory.

Meanwhile, The Nasdaq Composite Index
US:NQH6
was down 55.67 points, or 1.1%, to 4,835.76.

“The year is three days old, and we’ve already gotten two new things -- and one old thing -- to worry about,” said Steve Chiavarone, associate portfolio manager at Federated Investors, referring to rising tensions between Iran and Saudi Arabia, reports of a nuclear test in North Korea and signs of economic sluggishness in China.

Employers added 257,000 jobs in December, according to the data. The data is a widely watched indicator of job-market health, and usually precedes that month’s nonfarm payrolls report by a couple of days. Economists polled by MarketWatch expect Friday’s nonfarm payrolls report to show that 215,000 new jobs were added.

The services data comes after a disappointing reading on China’s manufacturing sector on Monday. Chinese officials guided their currency lower after the data, instigating a global market rout.

The Commerce Department reported that goods manufactured in U.S. factories declined by 0.2% in November. Meanwhile, the Institute for Supply Management’s services index fell 0.6 points to 55.3% in December. Economists polled by The Wall Street Journal had forecast a December reading of 56.3. A reading above 50 represents economic expansion.

Movers: Shares of Apple Inc.
AAPL, -1.31%
finished 4.7% lower after reports on Tuesday that the company plans to scale back production of its iPhones, pushing the stock price close to $100. In addition, the president of Casio Computer Co.
6952, -1.74%
said the Japanese watchmaker threatens to outshine Apple with new smartwatch models, according to The Wall Street Journal.

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